Texas Attorney General Sues EPIC City Developers Over Alleged Fraud and Muslim-Only Marketing Claims

Texas Attorney General Ken Paxton has filed a lawsuit against the East Plano Islamic Center (EPIC), Community Capital Partners (CCP), and several associated leaders, accusing them of operating an illegal securities and land development scheme connected to a proposed 400-acre community initially marketed as “EPIC City.”

Filed in Collin County following a months-long investigation and referral from the Texas State Securities Board, the lawsuit alleges the defendants raised tens of millions of dollars while violating securities laws, misleading investors about the project’s nature and location, and misrepresenting how funds would be used.

“The leaders behind EPIC City have engaged in a radical plot to destroy hundreds of acres of beautiful Texas land and line their own pockets,” Paxton said in a statement. “I will relentlessly bring the full force of the law against anyone who thinks they can ignore the rules and hurt Texans.”

According to the verified petition, CCP sold investment interests ranging from $40,000 to $80,000 despite failing to register the securities or qualify for federal exemptions. State investigators claim the group broadly solicited investors through meetings, social media, and online promotions—activities not permitted under the exemptions they claimed to qualify for.

The state also alleges that developers failed to take reasonable steps to verify that purchasers were accredited investors, with documentation missing or inadequate for numerous buyers. This oversight represents a significant violation of securities regulations that are designed to protect investors.

Another key allegation centers on misrepresentation. The petition states the project was advertised as being “in the heart of Josephine, Texas,” even after city officials informed developers in February 2025 that the land was not within city limits or its utility district. Despite this notification, marketing materials allegedly continued to make the false claim.

The state further points to promotional materials that appeared to specifically target Muslim buyers. Early website language and videos described EPIC City as the “epicenter of Islam in North America,” suggesting the development had religious significance that may have been used to attract a specific community of investors.

Financial improprieties also feature prominently in the allegations. Paxton’s office claims CEO Imran Chaudhary publicly promised he would take “not a cent” in salary, but later signed a contract paying him $360,000 annually through a separate company—a compensation arrangement not disclosed in written offering materials provided to investors.

Additionally, investigators allege that more than $1 million in investor funds were withdrawn for general operating expenses, significantly exceeding what was described in offering documents. This alleged misappropriation of funds raises serious questions about the financial management of the project.

Texas Securities Commissioner Travis Iles referred the matter to Paxton after identifying what he described as “flagrant” violations of securities regulations. Paxton first announced his investigation in March and sought the referral in October after uncovering additional concerns during the investigation process.

The legal action seeks several remedies, including an immediate halt to all fundraising tied to the project, freezing of assets, appointment of a receiver to manage remaining funds, correction of public statements, and imposition of civil penalties that could reach up to $20,000 per violation. The lawsuit also seeks the return of investor funds.

The development, which has since been rebranded as “The Meadow,” was marketed as a master-planned community spanning Hunt and Collin counties in North Texas. Court filings indicate hundreds of investors purchased units in the development, potentially putting significant personal investments at risk.

The case highlights growing concerns about real estate investment schemes targeting specific communities, particularly religious groups where trust and community connections can be leveraged to attract investors. It also underscores the importance of regulatory oversight in protecting investors from potentially fraudulent development projects.

Neither EPIC, CCP, nor representatives from Paxton’s office have responded to requests for additional comment on the lawsuit.